Study says 5 million foreclosures imminent

Feb. 16, 2010 at 10:12 AM
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IRVINE, Calif., Feb. 16 (UPI) -- A research firm estimated the number of U.S. homes headed for foreclosure would be enough to stock the housing market with a 10-month supply of unsold homes.

The study done by John Burns Real Estate Consulting Inc., said that 5 million homes, including condominiums, owned by owners behind on their loan payments would eventually fall into foreclosure in the next few years, The Wall Street Journal reported Tuesday.

The study called these homes the "shadow inventory" of homes, which would take 10 months to sell at the current rate of sales on a national average.

At the current rate of sales in Orlando, Fla., the homes would take 27 months to sell. It would take 24 months to sell these homes in Miami and 18 months to deplete the stock at the current sales rate in Las Vegas.

The study said there were 7.7 million mortgage accounts behind on their monthly payments. The study predicted a large majority of these would fall into foreclosure.

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